Disabled Veteran Sales and Use Tax Exemption

What is it?

Certain disabled veterans may be eligible for a sales and use tax exemption on the purchase of a vehicle owned and used primarily by or for the qualifying veteran.

Voters approved this new sales and use tax exemption in the November 2020 election, which became effective January 1, 2021.

Who qualifies?

Veterans of the United States Armed Forces or the Virginia National Guard who the U.S. Department of Veteran Affairs determined have a 100% service-connected, permanent, and total disability are eligible for a sales and use tax exemption on the purchase of a vehicle owned and used primarily by or for the qualifying veteran.

Under this amendment, a vehicle that is purchased by the spouse of a qualifying veteran can also be eligible toward the one exemption if the vehicle is used primarily by or for the qualifying veteran.

How to apply

To prove eligibility, qualifying veterans or spouses must submit the following documentation along with a Virginia title, or out-of-state title:

• DMV Form SUT 3 "Purchaser's Statement of Exemption" and;
• Summary of benefits letter from the U.S. Department of Veterans Affairs stating that the veteran has a 100% service-connected, permanent, and total disability.

If the vehicle is purchased through an online dealer participant and the qualifying customer paid sales and use tax (SUT) at that time, they may request a refund by mailing the appropriate documents to:

• Virginia DMV
• Attn: Titling Work Center
• P.O. Box 27412
• Richmond, VA 23269

If the vehicle is purchased through a dealer not participating in the Online Dealer program or through a private sale, the qualifying customer may either mail in the appropriate documents to the address above or schedule an appointment to visit a DMV customer service center for processing.

How to obtain a summary of benefits letter from the U.S. Department of Veterans Affairs (the VA)

• Request a letter through eBenefits: https://www.ebenefits.va.gov/ebenefits/homepage;
• Call the VA at 1-800-827-1000; or
• Request assistance from the Virginia Department of Veterans Services (DVS). Go to www.dvs.virginia.gov to find a DVS office near you.

Note

Customers who purchased a vehicle prior to January 1, 2021 and paid SUT are not eligible for a refund. However, if SUT was paid at a dealership on or after January 1, 2021, the qualifying veteran or spouse may request a refund from DMV by submitting DMV Form SUT 2 "Application for Refund of Sales and Use Tax" along with the summary of benefits letter from the U.S. Department of Veterans Affairs stating that the veteran has a 100% service-connected, permanent, and total disability.